Saudi market regulator probes Mobily for violations

The Capital Market Authority (CMA), Saudi Arabia’s regulator, has assigned an audit team to probe Etihad Etisalat Company’s (Mobily) financial statements, the authority said on thursday in a statement to the bourse.

Early investigations into Mobily's case started in November, when the regulator first suspected that the company had been violating market laws and listing regulations.

Last Wednesday, Mobily’s shares were suspended from trading until the company could explain why its audited results showed a SAR 913 million net loss for the 2014 fiscal year after reporting a net profit of SAR 220 million in its preliminary financials.

Mobily, the kingdom's second-largest telecom operator, is also required to disclose any related material information or subsequent events.

The company last week sacked its managing director and chief executive Khaled Al-Kaf from both positions after its audited financials were posted, according to data available on Argaam.

Based on the company's board report, Mobily's former chairman Abdulaziz Al-Saghyir was found to have cut his stake in the company from 15 million shares to 5.5 million throughout 2014.